Which of the Following Is True of Arbitrage Opportunities in Foreign

question 63

Multiple Choice

Which of the following is true of arbitrage opportunities in foreign exchange markets?

• A) They cause long-term bandwagon effects.
• B) They tend to be small and they disappear in minutes.
• C) They tend to occur very frequently.
• D) They are only valid for dollar transactions.
• E) They provide insurance against foreign exchange risk.

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